In May currency pair USDCAD showed soaring and on the last day of the month reached the maximum at 1.0365 creating bullish trend, which is marked on our chart with the channel of linear regression.
The fall in oil prices which was caused by the crisis in Europe destabilized the commodity currency of Canada and made the dollar stronger and more popular as save haven currency.
Future growth of currency pair USDCAD is supported by the canadian statics and technical analysis evidence. It is forecasted in the first half of June. As it became known on the May 31 in the first quarter of this year the current operations balance deficit of Canada grew from 10,3 billion to 9,7 billion in the last quarter of 2011.
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At the same time the low level of inflation prevents monetary policy tightening by the Bank of Canada. In April the prices on production and industry grew only by 0,4%.